Dfcu Bank has projected a pre-tax loss of Sh26.3 billion for the first six months of 2026, highlighting mounting pressure from rising operating expenses and increased loan impairment charges, despite recording strong growth in customer deposits, lending and its overall balance sheet.
According to the Banks’s unaudited half-year financial results, the projected pre-tax loss of Sh26.3 billion is an improvement from the Sh39.7 billion pre-tax loss recorded during the same period last year but still underscores the profitability challenges facing the lender.
After accounting for an income tax credit of Sh10.5 billion, the bank expects to post a net loss after tax of Sh15.8 billion.
The financial results reveal a mixed performance, with business growth remaining strong while earnings continue to come under pressure.
Customer deposits increased significantly by Sh410 billion, rising from Sh2.46 trillion a year ago to Sh2.87 trillion by June 30, 2026. The bank said the increase has strengthened its funding base and reflects continued customer confidence.
At the same time, loans and advances to customers grew by 21%, reaching Sh1.44 trillion from Sh1.19 trillion in the corresponding period last year, demonstrating sustained demand for credit from both households and businesses.
The bank set aside Sh11.8 billion as impairment allowances on loans and advances, reflecting heightened caution over asset quality as it continues to expand its loan book. Operating expenses also rose sharply to Sh230 billion, up from Sh150.4 billion in the previous year, placing additional strain on profitability.
Total assets expanded to Sh3.94 trillion, while liquid assets stood at Sh2.18 trillion, including Sh662.7 billion in cash and cash equivalents. Shareholders’ equity reached Sh755.4 billion, with the bank maintaining a 27% capital ratio, well above regulatory requirements.
dfcu Chief Executive Officer Charles Mudiwa said the institution remains well-capitalised and liquid enough to continue supporting customers and financing economic activity.
The results indicate that while dfcu continues to grow its balance sheet through higher deposits and increased lending, restoring profitability remains a key priority as management works to contain costs, improve efficiency and maintain the quality of its loan portfolio.
The half-year performance paints the picture of a bank that is expanding its market presence but still navigating the financial pressures associated with rapid business growth and a challenging operating environment.
